|
New Mexico | long term history dictates that for every $1 per bu corn ( and/or other products in the feed index ) adjusts to ( right at $40 per ton or 2 cents per lb air dry ), traditional usa style finished catte do a long term $25 cwt..
Been alot of $7ish corn since 08, thus the beef index eventually moves to $175 cwt. long term.
Nother bullish factor: Simply look at the prices received for non feds ( cull cows / cull bulls ) this year.
Alot of demand function when supply goes up 25% and prices paid for the cattle go up also.
If / when the S drouth ends, total usa available cattle supply going to drop a bunch seemingly overnight.
( more enviro equates to cheap rough natural feed and cattle left are in "tight" hands then )
Exports ( THAT is the real story ): USA econ stays weak, currency also relative weak, thus usa beef is thee cheapest close to the plate protien on the gobe.
We're not used to this in the usa, but consumers in the rest of the World figure meat protien at 50 cents to $1 per oz.
( usa still has $3.50 cents per lb UP to go before the 50 cent per oz. protien price is reached.
Competing meats:
usa chicken hatch adjusted way down in 011.
usa corp reducing replacement gilt numbers in 011 in the hog sector.
Sheep, lambs, goats, with countries like India ( China tries to, but cannot run with em on this ) buying everything available plus long term contracts for everything future in sight, the up coming in this sector is thee Wow UP factore yet to come.
Dave, why raise cattle that may only double up when lambs have a quadruple up in front of us? lol.
Edited by Markwright 9/10/2011 23:48
| |
|
Interesting things on non fed harvest
